Fannie Mae-No Politics (FNMA)

[The Man With No Name]

The prayer of relief Treasury declares Liquidation Preference paid in full and Senior Preferred Stock canceled.

Never gonna happen. The entire reason the SPS were modified such that the LP increases dollar-for-dollar with net worth is to retain absolute control over how a release is made. They may modify the SPS and make them non-cumulative based on their original face value, which would add $193B to tier 1 capital, then proceed with a conversion to increase CET1.

Whatever concoction they come up with, you can bet they won't be deeming their equity "paid in full".